North Carolina fuel tax rate change, July 2016
- Jul 29, 2016 | Gail Cole
The motor fuels tax for fuel sold in North Carolina is in flux due to the enactment of SB 20 in 2015. The tax applies to alternative fuels, diesel, and gasoline, and is included in the retail price paid by consumers at the pump.
The rate was a flat 35 cents per gallon for the period January 1, 2016 through June 30, 2016. It drops to a flat 34 cents per gallon for the period July 1 – December 31, 2016. Beginning January 1, 2017, it’s a flat rate of 34 cents per gallon, “multiplied by a percentage.” Beginning January 1, 2018, it’s “the amount for the preceding calendar year, multiplied by a percentage.”
The percentage referenced is 100%, plus or minus the sum of the following:
- The percentage change in population for the applicable calendar year, multiplied by 75%
- The annual percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25%.
For additional details, please see the text of SB 20.
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